By JON NAITO, P-I REPORTER

Published 10:00 pm, Tuesday, October 7, 2008

Less than a week before he presents his proposed 2009 budget to the King County Council, County Executive Ron Sims has announced further cost-cutting measures this week -- including layoffs and wage freezes -- in an attempt to eliminate a $15 million shortfall and balance the county's budget.

In a memo sent to county employees, Sims said not all of the estimated $90 million budget deficit for 2009 had been accounted for, and to close the $15 million gap that remained, the county would have to cap cost-of-living adjustments and raises for managers and nonunion employees and have asked many unions to do the same.

In addition, Sims said layoff notices would be issued Oct. 14, the day after his budget proposal, and those layoffs -- called a "substantial number" by Sims -- would take effect Jan. 1.

Carolyn Duncan, a spokeswoman for Sims, said Tuesday that she could not disclose the number of employees who would lose their jobs or what agencies would be affected. Duncan said unions were notified of Sims' decision Monday.

Sims said the county's cost-of-living adjustments to managers and nonunion employees would be capped at 3 percent, and wage increases would be halted. Sims asked unions to adopt the same initiatives.

The directives come several weeks after the announcement that the county's budget deficit for next year had risen from $86 million to $90 million. Early this year, the shortfall was projected to be $45 million, before rising to $60 million in the spring.

In his memo, Sims estimated that more than $54 million of the deficit was attributable in some manner to the fallout from the slumping economy.

But for some on the County Council, Sims himself should shoulder some blame.

"For this to be happening at this late date is quite troubling," said Councilman Larry Phillips, the chairman of the council's budget committee. "He's supposed to be presenting us with a balanced budget by Oct. 13. Now he's $15 million short? If he was going to make these changes, they should've happened much earlier."

In a letter sent to Sims dated Sept. 30, Phillips and several other members of the council proposed a dozen steps the county could take to lessen the shortfall, including the elimination of overtime, the suspension of new initiatives and hiring freezes.

"Certainly some of the deficit can be attributed to the souring economic situation," Phillips said. "But we were projected to be $45 million in the hole earlier this year. The storm clouds have been in the horizon for at least a year. He has not managed this situation well."

Phillips was critical of Sims' lack of transparency with the council and the unions and said Sims had put the county in a bind with his most recent revision. He was uncertain whether Sims could present a balanced budget at this late a date.

"This is a very big deal," Phillips said. "A $90 million deficit is a very serious problem. This should have been handled much better."